This is similar to straight-line depreciation, allowing a business or individual to write off an expenditure over a number of years Amortization generally applies to intangible assets For example, you purchase a business consisting of a machine with a fair market value of $10,000 and goodwill of $15,000 You can't expense (write off) the cost in the year acquired, but you can depreciate the machine using any of several methods, including one that provides greater deductions in the early years The goodwill can only be amortized over 15 years using a straight-line method, or $1,000 per year